D 570 
.8 

.S4 n4 
1919a 
Copy 1 



igl'l 66th Congress, ) 

I Session. ) 



SENATE. 



( Document 
1 No. 231. 



DISPOSITION OF EX-GERMAN VESSELS. 



MESSAGE 



FROM THE 



PRESIDENT OF THE UNITED STATES, 

TRANSMITTING 

IN RESPONSE TO A SENATE RESOLUTION OF EEBRXJARY 14, 1920, 
INFORMATION WITH RESPECT TO THE DISPOSITION OF THE 
EX-GERMAN VESSELS IN POSSESSION OF THE UNITED STATES, 
AND TRANSMITTING A DRAFT OF A PROPOSED UNDERSTANDING 
IN REGARD TO EX-ENEMY MERCHANT TONNAGE. 



February IS (calendar day, February 20), 1920. — Read 

table and to be printed. 



ordered to lie on the 



To the Senate: 

I have the honor to acknowledge the receipt of a resohition passed 
by the Senate on February 11, requesting the President to inform 
that body — 

whether any, and if so, what, agreement or understanding exists between him 
and officials of Great Britain concerning the disposition by the United States 
of America of the German ships whicli the Shipping Board is proposing to 
sell, or which were acquired by the United States after the termination of 
hostilities between said United States and the Central European Teutonic 
Powers. 

The ships for the purchase of which bids have been asked by the 
Shipping Board were taken over by Executive orders issued pur- 
suant to the joint resolution of Congress of May 12, 1917, authoriz- 
ing the President to take over for the United States the possession 
and title of any vessel within its jurisdiction, under enemy ownership, 
or under the registry of an enemy country. The Government of 
the United States is not in possession of any ex-German vessels 
except those taken over under this resolution. Under an armistice 
agreement between the German Government and the allied and 
associated powers certain German vessels were taken over primarily 
for the transport of food to Europe, including Germany, and for 
the transportation of troops. Of the tonnage so taken over, certain 



2 DISPOSITION OF EX-GERMAN VESSELS. S -J*, 

passenger vessels were allocated to the United States temporarily 
for tlie i^iirpose of repatriating American soldiers. AVhen the trans- 
portation of our troops was completed, these vessels were all sur- 
I'endered in accordance with the agreement under which they were 
temporarily allocated to this Government for such use. 

There is not. nor has there been, any agreement or understanding 
between the President of the United States and officials of Great 
Britain concerning the sale of the ex-Cierman vessels in possession 
of the Ignited States, nor is there an}^ agreement or understanding 
with respect to what disposition shall be made of those ships by 
the Ignited States. 

I believe the above information fully answers the Senate's inquiry. 
However, I am transmitting herewith a draft of a proposed under- 
standing in regard to ex-enemv merchant tonnage to which I have 
given assent, subject to future action of Conp-ress as provided 
therein. Although this understanding, Avhich recognizes American 
rights with regard to German vessels taken in our ports, does not 
relate to the disposition of such vessels by the United States, I am, 
nevertheless, transmitting it in order that the Senate may be in 
possession of all the information there is in any way relating to 
the vessels in question. I had intended to submit this to Congress 
at the appropriate time, after the ratification of the treaty with 
Germany. 

WOODROW WiLSOX. 

The White House, 

Fcbmary 20, 1920. 



The allied and associated Governments whose signatures are hereto 
affixed, severally agree as regards merchant shipping as follows: 

1. The reparation commission will, as soon as possible, compile a 
list giving fullest particulars available on all enemy ships still in 
existence, captured, seized, or detained by any allied or associated 
Government during the war, and also all other enemy ships or boats 
which the enemy powers are required to cede under the treaty of 
peace. 

2. The reparation commission will take such steps as will secure 
that each of the allied and associated Governments will retain as its 
own the complete title to and use of all ships captured, seized, or de- 
tained during the war as a war measure and prior to November 11, 
1018, and Avill own the same free from any claim of any of the other 
allied or associated Governments. 

In all cases where the ships and boats so to be retained by any 
allied or associated Government are in excess of the claims of such 
Governments, res])ectively, for Avar losses in merchant ships such 
Governments shall not make any claim for a share in other ships and 
boats ceded under the treaty of peace. 

3. In all cases where the ships and boats so to be retained by any 
such Governments are insufficient to satisfy in full the claims of such 
Governments, respectively, for war losses in merchant ships, the 
enemy ships which remain and which are to be ceded under tiie treaty 
of peace will be divided into three classes, viz, liners, othet- merchant 
ships, and fishing boats, and will be distributed to such Governments 

d; 4f -. 

MAR !5 1920 



DISPOSITIOISr OF EX-GERMAN VESSELS. 3 

on the basis of ton for ton and class for class of the ships and boats 
lost and not replaced by the ships and boats retained, but in propor- 
tion to the balances due on the claims of such Governments, respec- 
tively. 

4, As the ships and boats so to be retained will, in the case of 
Brazil, China, Cuba, Siam, and the United States, exceed the total 
amount of tonnage which would be allocated to those countries were 
the total enemy tonnage captured, seized, detained, or still in ex- 
istence shared in proportion to losses of ships and boats during the 
war, in each such case a reasonable value on the excess of ships and 
boats over the amount which would result from such a division will 
be determined. The amount of the value so fixed will be paid over 
by each such State to the reparation commission for the credit of 
Germany toward the sums due from her for reparation, in respect to 
war losses of merchant ships. 

5. As soon as the reparation commission has collected the necessary 
information, and is in a position so to do, they will give public notice 
that after an interval of two months they will proceed to divide the 
vessels except those captured, seized, or detained by the allied and 
associated Governments which are to be retained by them, respec- 
tivel^y, as hereinbefore provided. If within one month of the publi- 
cation of the notice any allied, associated, or neutral Government, 
person or corporation a national of such Government and acting 
through such Government, notifies the commission that they have 
an equitable claim against any vessel which has not been, or is not 
being, satisfied by the enemy Governments, that claim will be con- 
sidered on its merits b}^ the commission, which may adopt any pro- 
cedure it thinks fit, provided it is expeditious ancl is calculated to 
do substantial justice as between the allied and associated Govern- 
ments on the one hand and the claimant on the other. 

The commission will have power to determine claims so presented, 
and such determination will be conclusive, and the commission will 
also have power to enforce its findings. 
Dated May — , 1919. 

WooDRow Wilson 
(Subject to the explanation contained 

in the attached memorandum). 
D. Lloyd-George, 

I deem it my duty to state, in signing this document, that, while 
I feel confident that the Congress of the United States will make 
the disposal of the funds mentioned in clause 4 which is there agreed 
upon, I have no authority to bind it to that action, but must de- 
pencl upon its taking the same view of the matter that is taken by 
the joint signatories of this agreement. 



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